H2O America (NASDAQ:HTO) Trading Down 4.4% - Here's Why

Key Points

• Shares fell 4.4% intraday to $57.03 with trading volume down about 86% versus the average session, after the stock had closed at $59.67.
• Analyst sentiment is mixed but averages to a "Moderate Buy" with a consensus price target of $62; recent notes include Barclays raising its target to $63 and Robert W. Baird initiating coverage at $67.
• H2O America reported Q results of $0.46 EPS (slightly light on revenue), set FY2026 guidance of 3.080–3.180 EPS, pays a $0.44 quarterly dividend (3.0% yield), and saw a notable insider purchase by Atlas Infrastructure Partners.

H2O America (NASDAQ:HTO - Get Free Report) fell 4.4% during mid-day trading on Monday . The stock traded as low as $57.55 and last traded at $57.0310. 70,253 shares were traded during trading, a decline of 86% from the average session volume of 487,260 shares. The stock had previously closed at $59.67.

Analyst Ratings Changes

Several research firms have issued reports on HTO. Barclays upped their price target on shares of H2O America from $61.00 to $63.00 and gave the stock an "overweight" rating in a research report on Monday, March 9th. Wall Street Zen cut shares of H2O America from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Robert W. Baird initiated coverage on shares of H2O America in a research note on Friday, March 13th. They set an "outperform" rating and a $67.00 target price for the company. Zacks Research upgraded shares of H2O America from a "strong sell" rating to a "hold" rating in a research note on Monday, March 16th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of H2O America in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $62.00.

H2O America Trading Down 3.2%

The company has a market cap of $2.42 billion, a price-to-earnings ratio of 19.73, a PEG ratio of 3.09 and a beta of 0.42. The business's 50 day moving average price is $56.18 and its 200-day moving average price is $51.46. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 1.21.

H2O America (NASDAQ:HTO - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The utilities provider reported $0.46 EPS for the quarter. H2O America had a net margin of 12.81% and a return on equity of 7.08%. The business had revenue of $194.19 million for the quarter, compared to analyst estimates of $195.73 million. H2O America has set its FY 2026 guidance at 3.080-3.180 EPS. On average, equities analysts anticipate that H2O America will post 2.75 EPS for the current fiscal year.

H2O America Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Monday, February 9th were issued a dividend of $0.44 per share. The ex-dividend date of this dividend was Monday, February 9th. This represents a $1.76 annualized dividend and a dividend yield of 3.0%. H2O America's dividend payout ratio (DPR) is currently 60.27%.

Insider Activity at H2O America

In other H2O America news, major shareholder Atlas Infrastructure Partners bought 50,385 shares of the stock in a transaction dated Friday, April 10th. The shares were bought at an average cost of $59.06 per share, with a total value of $2,975,738.10. Following the completion of the acquisition, the insider owned 4,582,469 shares of the company's stock, valued at $270,640,619.14. This trade represents a 1.11% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 0.38% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. bought a new position in shares of H2O America during the fourth quarter worth approximately $133,834,000. Amundi acquired a new position in shares of H2O America in the 3rd quarter valued at approximately $105,965,000. Cerity Partners LLC bought a new stake in shares of H2O America during the 4th quarter worth approximately $70,830,000. Morgan Stanley lifted its holdings in shares of H2O America by 123.0% during the 4th quarter. Morgan Stanley now owns 1,368,180 shares of the utilities provider's stock worth $67,027,000 after acquiring an additional 754,715 shares during the period. Finally, State Street Corp lifted its holdings in shares of H2O America by 4.6% during the 4th quarter. State Street Corp now owns 1,359,773 shares of the utilities provider's stock worth $66,615,000 after acquiring an additional 59,799 shares during the period. 84.29% of the stock is owned by institutional investors.

About H2O America

SJW Group, through its subsidiaries, provides water utility and other related services in the United States. It operates in Water Utility Services and Real Estate Services segments. The company engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services; and supplies groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from the Santa Clara Valley Water District.

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